WASHINGTON — Chevy Chase-based JBG Cos., the prolific Washington commercial real estate developer, will not get a foothold in the Big Apple, at least not as planned.
JBG’s merger with publicly traded New York REIT Inc. (NYRT), announced in May, has been terminated because of strong NYRT shareholder opposition.
As part of the mutually agreed decision to call off the $8.4 billion merger, NYRT will pay JBG a $9.5 million breakup fee.
“Because we were unable to modify the transaction to the degree that would likely have gained shareholder approval, we decided it was more expedient to simply terminate the agreement rather than proceed with a shareholder vote,” JBG managing partner Matt Kelly said in a statement.
NYRT shareholders preferred liquidating the company’s portfolio of commercial real estate in the Greater New York area, which the company now plans to do.
JBG has been developing commercial real estate in the Washington market since 1960. In announcing the merger in May, the company said it had been actively evaluating ways to bring its development strategy to New York City for some time, and that the merger would create tremendous opportunities.
JBG’s current projects in the Washington area include two high-rises under construction in Rosslyn — CEB Tower, at Central Place, and Central Place Residential – as well as the residential development The Shay, in the District, and the mixed-use development Atlantic Plumbing in D.C.’s U Street corridor.
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